Am I facing a Capital Gains bill?

By THIS IS MONEY
Updated:

 

I acquired AWG Shares at time of initial privatisation. I have accepted the Osprey offer of 1578p per share for 813 Shares thus getting £12829.14. Will I have to pay CGT and if yes, how do I work out my CGT liability? Earlier in the year I also got £4656.3 for 498 BAA Shares acquired at BAA privatisation. KK, Lowestoft

Evolve Financial Planning's Jason Witcombe says: For the current tax year, you have a capital gains tax allowance of £8,800. This means that any gains up to this level are free of tax. Simplistically, you subtract the purchase price from the sale price to work out your gain, however, this can be reduced by taper relief and/or indexation. In order to make an accurate calculation, you need details of how much you paid for the shares and when. It is your personal responsibility to report your tax affairs accurately on your tax return, therefore you may like to consider appointing an accountant to help you with this calculation.

Paul White, Belgravia Insurance Consultants, says: You probably would have to pay CGT, as you do not give the Acquisition Cost of the AWG Shares. Go to http://www.invidion.co.uk/capital_gains_tax_calculator.php to launch the Calculator. Enter the details and it should tell you if you have any liability. Regarding the earlier BAA shares, you would have to check in which Tax Year that gain was realised. If in the present Tax Year, then you must do the sums to work out the Total CGT to pay for 2006-2007.

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